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We examine the feasibility polyhedron of the uncapacitated hub location problem (UHL) with multiple allocation, which has applications in the fields of air passenger and cargo transportation, telecommunication and postal delivery services. In particular we determine the dimension and derive some classes of facets of this polyhedron. We develop some general rules about lifting facets from the uncapacitated facility location (UFL) for UHL and projecting facets from UHL to UFL. By applying these rules we get a new class of facets for UHL which dominates the inequalities in the original formulation. Thus we get a new formulation of UHL whose constraints are all facet–defining. We show its superior computational performance by benchmarking it on a well known data set.

Given a public transportation system represented by its stops and direct connections between stops, we consider two problems dealing with the prices for the customers: The fare problem in which subsets of stops are already aggregated to zones and "good" tariffs have to be found in the existing zone system. Closed form solutions for the fare problem are presented for three objective functions. In the zone problem the design of the zones is part of the problem. This problem is NP hard and we therefore propose three heuristics which prove to be very successful in the redesign of one of Germany's transportation systems